It's not clear which model of iPhone didn't come up to scratch, but China Business suggests that between five and eight million handsets were returned "due to appearance of substandard or dysfunctional problems." The total value of the loss to Foxconn could be up to $1.6 billion—if the numbers are accurate.

Of course, those returned phone will almost certainly torn down for parts. In the meantime, though, such a large return could impact Apple's stock levels—something the company will have been keen to avoid at all costs. [China Business via Register via 9to5mac]